Numerous new forms of video advertising have been hitting the marketplace over the years, with 2011 being one of the largest growth of options I can remember. Still, advertisers are still tied up in the pre-roll according to the latest report by Break Media and Advertising Perceptions Inc.
Top Video Advertising Formats
I write quite often about video ad formats, both new and old. Well, it seems that the good old pre-roll is still, pardon the pun, rolling along as it pulled in 31% of video ads in the latest report. I guess they figure that forcing users to watch the video means it will perform better (Wrong!). Then again, they don't break out the pre-rolls into all the fancy new things that can be done like giving consumers a choice of which ad to see, or which product they prefer. User choice was one of my top three things this year for video ads and from all the new offerings across the video ad network spectrum, I think they know it's important as well.
Now here's something I have to think is really wrong in the report. In regards to ad selector usage (giving users control over what ad to see) there's a massive drop in plans for the future. Last year 33% said they would use it in 2011. According to this report only 18% are planning on it for 2012. That seems like an error to me because of all the positive reports that have come out touting how great the viewers respond when given a choice.
Pre-rolls did take a one percent hit in plans for 2012 from 63 to 62%. Mobile took a major hit in their findings dropping from a lofty 55% planning to use to just 39% (perhaps another victim of random sampling).
At least there's a drop in plans on using rich media overlays, videostitials, mid and post-roll which is good news for viewers.
Another area that took a hard hit in plans for 2012 is connected TV ads, cut in half from 24% to just 12% planning on using those types of advertising. What a strange number because I'm fairly sure that everyone, and I mean everyone in TV manufacturing will have multiple models of connected TVs and I will probably see the majority of them while at CES. I have meetings with Panasonic, LG, Samsung, Vizio and Sony, all of whom want to show me connected TV stuff. Weird, right? I mean, the drop in plans to use it, not that they all want to meet with me.
The Nitty Gritty of Methodology
Study findings are derived from an online survey completed by 320 persons working for advertising agencies and the companies that hire them (i.e. marketers) in the United States and Canada. Respondents were solicited from the Advertiser Perceptions Inc. proprietary database of media decision makers and offered a cash incentive for survey completion. All respondents are involved in the decision-making process for choosing what types of online media will be included in advertising campaigns. They work for companies spending a minimum of $1 million annually on online advertising. Survey results have a margin of error = ± 7%.
Seven percent is a pretty wide margin of error. With 320 respondents and say 99% confidence level it would mean 6,000 to 10,000 companies in their database to draw these numbers. Of course, it's a proprietary database so we can't be sure. Still, 7% is a big margin of error if you ask me, the biggest I've seen in a study I wrote about this year I think.